Can AI Chatbots Handle Your Holiday Shopping? Here's What We Found.

Key Points

Stores like Amazon and Walmart are rolling out AI chatbots to assist customers in locating their desired products.

This shift is happening as more Americans are seeking generative AI for shopping advice, as noted by Adobe.

Retail experts believe that with so many choices available, shoppers might find these tools helpful in simplifying their decision-making process.

Can an AI shopping assistant help you tackle your holiday shopping dilemmas? Possibly—just remember to seek their advice but don’t treat it as the ultimate truth.

AI recommendations are making their way into your shopping experience. Retailers are upgrading their chatbots as more Americans turn to generative AI tools for creating shopping lists, comparing products, and monitoring prices, according to analysts. E-commerce platforms are either integrating or developing their own versions of tools like ChatGPT and Google's Gemini, as noted by Vivek Pandya, the lead insights analyst at Adobe Insights.

To see how effective these assistants are, I asked a few AI-powered helpers for gift ideas for some of the trickiest people on my list. The responses were often useful, though sometimes a bit surprising. One assistant suggested a fun game for my young niece, but it also recommended a metal-cutting tool for my elderly grandmother, which was a bit odd.

Shopify's virtual storefront, Shop, rolled out an AI chatbot last year. Amazon introduced Rufus in February, claiming it was trained on their catalog, customer reviews, and other sources. Walmart has a similar tool that's currently available to select customers.

It seems like shoppers are warming up to virtual assistants. Online retailers saw a nearly 2,000% increase in traffic from major AI platforms on Cyber Monday, according to Adobe. Plus, shoppers indicated that using generative AI for shopping is one of their top preferences, as per market research from NielsenIQ. Merchants are also using these tools for tasks like order tracking and handling returns.

“That number one [use] being focused on 'Help me find the right product when I’m shopping' wasn’t something we were expecting," said Jason Boyd, senior vice president of consumer insights, commercial at NielsenIQ.

Bots Provide Shopping Recommendations and Various DIY Concepts.

Rufus suggested the card game Taco vs. Burrito, developed by a 7-year-old, as a gift for my niece. However, it proved to be more challenging for my 93-year-old grandmother, who I observed has a limited memory. The chatbot proposed that, with some assistance, she could utilize a machine designed for cutting vinyl and metal to create "personalized projects." Additionally, it provided options for more traditional gifts, such as photo albums and blankets.

The shop assistant compiled a list of personalized gifts I could either purchase or create for my grandmother, ranging from calendars featuring family photographs to memory jars. In the case of the memory jars, it provided guidance on how to make them by decorating a container and filling it with pictures and descriptions of cherished moments, rather than simply offering items for sale.

I also sought advice regarding my boss, with whom I have collaborated for only six weeks. Both Amazon and the shop's assistants recommended that I could leave a positive impression with books focused on professional development and leadership. They also suggested alternatives such as desk accessories, gift cards, and gourmet treats.

In a recent blog post, Amazon expressed its openness to feedback as it refines its application of emerging technology. The shop has successfully utilized AI to enhance user experiences and plans to continue improving its methods, as noted by executives during a recent earnings call.

Retailers are currently exploring these innovative tools at a time when generative AI is still evolving, according to Pandya, who mentioned that the technology is likely to become more user-friendly and effective over time; presently, the best results are achieved when users input well-crafted queries.

"We're still in this sort of prompt stage with generative AI," Pandya said.

AI chatbots are quickly becoming a valuable tool for holiday shopping, offering personalized recommendations and simplifying decision-making. While their suggestions can sometimes be unexpected, they often provide useful insights, making them a helpful resource for finding the perfect gift.

Retailers like Amazon, Walmart, and Shopify are embracing these AI tools, and as the technology continues to improve, shoppers can expect even better experiences in the future. Whether you're looking for personalized gifts or trying to navigate the vast selection of options, AI chatbots can help make your holiday shopping smoother and more efficient.

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